Some questions I have (new to BC):
1. Where does the processing happen for the coin? One of the early crypto currency principles was to have distributed processing so that all processing does not happen in one place. It seems with BC that no processing happens on your computer, just an open wallet connected to the network. if processing does not happen on our computers, then does it get processed on a central computer somewhere?
2. How is consensus reached in the network that transactions are not fraudulent or spent twice.
The wallet
IS the processing node... that's what staking is all about.
EDIT (for clarification).
The difference is there isn't a difficult 'problem' to solve as a secondary validation (PoW which miners do in other coins). The 'problem' with BC is simply whether or not the blockchain is secure - no more, no less. Think of coin-age in PoS as being a shareholder in a public company (although I stress this is only for illustration - it's NOT a public company). Shareholders have two purposes, to gain profits through shared investment - like your CPU time while staking - and secondarily, to make sure that the company doesn't do something completely stupid.
Your BC are like 'voting shares' in a manner of speaking.
That's not terribly accurate, but I think it's a reasonably fair analogy for layman investors. For more detailed information see the wiki articles on PoS or look at blackcoin.co for additional details.
